Golden Eagle Insurance Corporation v. Albera Bros. Inc.
Published: Apr. 8, 2000 | Result Date: Aug. 13, 1999 | Filing Date: Jan. 1, 1900 |Case number: 996856 Verdict – $290,019
Judge
Court
San Francisco Superior
Attorneys
Plaintiff
Charles A. Longo
(Charles A. Longo, Esq.)
Defendant
Gregory C. Simonian
(Casas Riley Simonian LLP)
Facts
Plaintiff Golden Eagle Insurance Corp. insured Tony JeongÆs Victorian apartment buildings on South Van Ness in San FranciscoÆs Mission District. In June 1996, a building adjacent to the Victorian apartments was damaged by fire and became vacant. Shortly thereafter, Jeong died from unrelated causes.
Defendant Albera Bros. was a Jeep dealership with a lot adjacent to the vacant building. In April 1997, defendant purchased the adjacent building with the intent of knocking it down to expand the car lot. The building remained vacant while Albera filed for demolition permits.
On Aug. 8, 1997, the vacant building once again caught fire, but this time, it was completely destroyed. The adjacent apartments, now owned by Tony JeongÆs estate, was damaged when the fire spread to it from the vacant building. During the time that the vacant building was standing, trespassers periodically entered it.
The frequency of the trespass was uncertain, but evidence showed that at the time of the second fire, the vacant building had a reputation with the locals and local police as a ôshooting galleryö and that it was regularly occupied by homeless individuals.
The San Francisco Fire DepartmentÆs investigation determined that the fire was arson because they found no accidental cause for the ignition. Albera Bros. knew of the trespassers and also knew of the large number of homeless individuals and drug users in that neighborhood. More than once, Albera Bros. called the police to evict trespassers.
Moreover, ôNo Trespassingö signs were put up and the boards torn down by trespassers to enter the building were replaced more than once. Albera Bros. did not implement any measure to secure the building. Its car lot adjacent to the building, however, was protected by a high chain-link fence topped with razor wire.
Golden Eagle Ins. Corp. paid Tony JeongÆs estate $418,652 for repairs to the building and $33,960 for lost rents.
Settlement Discussions
The plaintiffs demanded $425,000. Defendants offered $165,000. At the start of trial, plaintiff reduced the demand to around $200,000, while defendant remained at $165,000. During trial, defendant withdrew the $165,000 offer.
Damages
The plaintiff claimed cost of repair and business interruption in the amount of $464,483.00 which was the amount it paid its insured.
Other Information
On Dec. 15, 1999, defendantÆs motion for judgment notwithstanding the verdict was denied. DefendantÆs motion claimed that, as a matter of law, a property owner has no liability for damages resulting from the criminal acts of third parties. On Jan. 7, 2000, plaintiff was awarded $45,159.55 costs which included $38,565.56 prejudgment interest.
Deliberation
1+ days
Poll
11-1 (negligence), 10-2 (causation)
Length
nine days
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